Gold prices rose on Monday and stayed above the key $1,500 per ounce psychological level, as stock markets slipped on concerns about global economic growth and the US-China trade dispute, triggering safe haven bids. Spot gold was up 0.6% at $1,505.92 per ounce at 1:44 pm EDT (1744 GMT), holding close to last week's more than six-year high of $1,510. US gold futures settled up 0.6% at $1,517.20 an ounce.
"We have a little weakness in the equity markets globally this morning so certainly we have continued safe haven bids for gold," said David Meger, director of metals trading at High Ridge Futures. "With continued disruptions in Hong Kong during the weekend, trade tensions and global central bank easing, it's not hard to understand why gold prices remain supported," Meger added.
US stocks were dragged down by financial stocks, as investors shunned risky bets on fears that a drawn-out US-China trade war could force the global economy into recession. Gold prices rose as much as 4% last week and are up about 17% this year. "Anything is possible (with gold prices), if the trade negotiations deteriorate further prices can go even higher," said Miguel Perez-Santalla, vice president of Heraeus Metal Management in New York.
Analysts said negative debt yields around the globe were further supporting bullion. Non-interest-bearing gold tends to benefit when yields on other assets are low. Hedge funds and money managers raised their bullish stance in COMEX gold in the week to August 6, the US Commodity Futures Trading Commission (CFTC) said on Friday. Silver was up 0.8% at $17.07 per ounce. Platinum was flat at $858.88 per ounce, while palladium gained 0.9% to $1,433.69 an ounce.
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